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Influence of Organizational Policy on the Performance of Selected Microfinance Institutions in Kitui County

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  • Maimbu Nyamai

    (School of Business and Economics, Kenya Methodist University)

  • Jane Munga

    (School of Business and Economics, Kenya Methodist University)

  • Anthony Murithi

    (School of Business and Economics, Kenya Methodist University)

Abstract

Microfinance Institutions (MFIs) are unable to meet the current market demand requiring firms to identify workable methods that satisfy the organization’s needs. The present study sought to determine the influence of Organizational Policy on The Performance of Selected Microfinance Institutions in Kitui County. The study applied a cross-sectional research design, population of the study included 175 middle-level managers in the departments of finance, human resources, procurement, sales, and marketing as well as the ICT department among 7 MFIs in Kitui county. The study applied a stratified random sampling technique to sample 122 respondents. Data was collected using questionnaires that were physically administered. The study analyzed data using descriptive and inferential analysis. The study revealed a β of 0.641, t= 7.507, which was associated with a p-value of 0.001. The study concluded that organizational policy had a significant and positive influence on the performance of microfinance institutions in Kitui County. Microfinance institutions should regularly review policies on resource allocations, codes of conduct, power relations, and communication to ensure that they are relevant at all times and reflect the requirements of the strategic plans.

Suggested Citation

  • Maimbu Nyamai & Jane Munga & Anthony Murithi, 2023. "Influence of Organizational Policy on the Performance of Selected Microfinance Institutions in Kitui County," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(9), pages 414-422, September.
    • Handle: RePEc:bcp:journl:v:7:y:2023:i:9:p:414-422
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    References listed on IDEAS

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    3. Paolo Roffia & Virginia Simón-Moya & Javier Sendra García, 2022. "Board of director attributes: effects on financial performance in SMEs," International Entrepreneurship and Management Journal, Springer, vol. 18(3), pages 1141-1172, September.
    4. Paniagua, Jordi & Rivelles, Rafael & Sapena, Juan, 2018. "Corporate governance and financial performance: The role of ownership and board structure," Journal of Business Research, Elsevier, vol. 89(C), pages 229-234.
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